HK Stock Market Move | Gold stocks opened higher collectively as Wallers dovish remarks cooled interest rate hike expectations. Easing pressure from the dollar and interest rates has boosted the recovery of gold.

Gold stocks opened higher collectively. As of the time of writing, ZIJIN GOLD INTL (02259) rose 4.12% to HKD 166.8; Zijin Mining Group (02899) increased by 4.02% to HKD 37.8; Chifeng Jilong Gold Mining (06693) gained 3.04% to HKD 44; and LINGBAO GOLD (03330) rose 2.98% to HKD 23.5. In news, on Thursday evening, Federal Reserve Governor Christopher Waller stated that if upcoming data confirms that inflationary pressures are easing, he would prefer to support maintaining interest rates at the next monetary policy meeting. However, he also warned that if inflation data is strong, further rate hikes in September remain a possibility. Following Wallers remarks, traders reduced their bets on a rate hike in September, resulting in a decline in yields on U.S. Treasuries across multiple maturities, while the U.S. dollar index also fell significantly. The market is currently focused on the upcoming U.S. non-farm payroll data for August to be released tonight. CITIC Futures believes the significance of Waller's speech lies in breaking the previous one-sided extrapolation of hawkish signals from Waller, indicating that the Federal Reserves policy path has returned to being jointly determined by employment and inflation. Even if the service sector remains resilient, as long as employment continues to cool, there will be limited room for further increase in rate hike expectations. The core focus will continue to be the relative changes between employment and inflation.